The Orcfax Incentivized Testnet (ITN) is about to begin! Phase 1 focuses on decentralizing data collection for Centralized Exchanges (CEXes). This post outlines what validators need to know and what to expect during this initial stage.
TLDR
✨ Registration is open! Start here: Signing Key Aliasing Guide
⚙️ Validators, get ready for Phase 1! Start here: Phase 1 Manual
📅 ITN Launches: Dec 2, 2024
💰 Rewards Pool: 750,000 FACT for the first 15 days
📤 Rewards Distribution: via tosidrop.io
What Validators Will Do in Phase 1
In Phase 1, validators will run Orcfax’s software responsible for collecting data from centralized exchanges (CEXes). The validator’s role involves using the provided Orcfax software to gather cryptocurrency price data from various CEXes. Once collected, this data will be sent to a validator operated by Orcfax.
Requirements for Validators
In Phase 1, validators are expected to hold a Validator License NFT on mainnet. Validators must also maintain a balance of 500,000 FACT tokens in the same wallet; this balance is necessary for participation but does not need to be locked in a smart contract during this phase. At a later Phase, we will introduce staking contracts.
Additionally, validators need to meet specific technical requirements, including having a Linux server with at least 2GB of RAM and a single CPU, a broadband internet connection, and familiarity with the command-line interface (CLI). Validators are responsible for installing and maintaining necessary software, such as the operating system (Linux) and required packages, as well as the Orcfax-provided collector software. Active participation, node monitoring, and providing feedback to the Orcfax team are also essential parts of the role.
Technical documentation has been made available here. Operators are invited to begin setting up their nodes with the published software in preparation for ITN Phase 1 by December 2.
Aliasing signing keys
Validators need to be able to sign messages collected and sent to an Orcfax validator node. Signing allows Orcfax to reward ITN participants and protects the integrity of the data being sent. That being said, node operators should not be signing messages with their primary signing key under any circumstances, be that the ITN, or a future mainnet. This protects the network’s integrity if a key is compromised and more importantly, it protects you, the operator.
We have developed an aliasing protocol to allow operators to operate a node with an enterprise signing key and address. Node operators are invited to begin the process of aliasing their keys immediately to iron out any issues and minimize any delay prior to the starting date of ITN Phase 1. The protocol to alias your keys is described in our docs below.
What to Expect From Phase 1
Phase 1 is collection only, so it will not require the knowledge of running a Cardano Node. Only some Cardano tooling is used to sign messages using aliased signing keys that allow Orcfax operators to be rewarded while keeping their primary signing keys safe.
Phase 1 will be used to collect a number of CEX feeds, to begin with a theoretical collection rate of 1440 facts per feed per day (one per minute). The collection effort will be used to ascertain the capacity of the Orcfax validator(s) and to generate statistics about how much data can be collected by Orcfax License holders. Phase 1 will also be used to generate feedback-driven documentation that will support the next phases of the ITN and future mainnet operations for all node operators.
It’s important to note this is the Incentivized Testnet, so do not expect everything to go smoothly from day 1.
At the beginning of Phase 1 we will be looking at the number of collected price data points and rewards will be determined on that basis. As we grow our own proficiency and statistics, our analysis of the data will become more detailed, and will look at the veracity and quality of the data sent by collectors.
There is no risk of losing stake. It is important to note that throughout the ITN, Orcfax will be focused on rewarding participation, and slashing staked $FACT will not occur at any point of the ITN. Staking tests to include slashing will only happen if $tFACT (testFACT) is minted and made available. Slashing of $FACT remains a function which Orcfax reserves for future iterations of the mainnet network.
While there are no concrete parameters to measure the success of Phase 1, some key indicators will include:
- Resolving participation and engagement issues,
- Maintaining continued network reliability,
- The ability to scale feed collection (e.g., adding or removing feeds).
While it is not yet planned to publish data onto a Cardano testnet via ITN Phase 1, if the network is able to achieve a level of reliability, we will investigate it.
Rewards in Phase 1
In Phase 1, validator rewards are based on successful data collection, with each collected price data point contributing to your total rewards. As the ITN progresses, additional standards may be introduced. Data that does not meet these standards will not qualify for rewards.
A rewards pot of 750,000 FACT tokens is allocated for validator rewards during the first 15 days (round 1). This amount may be adjusted in future rounds. Rewards are calculated proportionally based on your contribution to overall data collection. This calculation is further enhanced by the ITN reward multiplier you earned previously (accessible here). For instance, if a validator has collected 5% of all fact statements (after applying the ITN multiplier) in a specific period, they will receive 5% of that period’s available rewards. In the spreadsheet below, you can view and experiment with the reward calculations.
Important:
- During unscheduled maintenance, all participating validators will receive equal rewards.
- During scheduled maintenance, no rewards will be distributed. For example, if Orcfax announces a 1-day maintenance on day 14, the rewards distribution period will be extended by one additional day to account for the downtime.
- We will take a snapshot of all ITN multiplier scores on December 1. Until then, adding or removing FACT may affect your multiplier. After the snapshot, your multiplier will remain fixed for the entire ITN. Please note that moving your license to another stake key will result in losing your multiplier.
Accrued rewards are shared every 15 days based on data tracked in a spreadsheet. Actual token distribution occurs shortly afterward. You will be able to claim your tokens via Tosidrop. Validators can monitor their performance using command-line tools, which we will share in our documentation. We are starting with this low-tech approach and plan to enhance the claiming and rewards tracking process as the ITN progresses.
For the first 15-day period, 750,000 FACT tokens (half of the monthly pot) have been allocated for distribution.
How to claim your rewards?
Every 15 days, Orcfax shares a spreadsheet listing validator addresses and the total number of successful data collections for each. You can claim your rewards through Tosidrop at any time, allowing you the flexibility to collect your Phase 1 rewards whenever it suits you. Unclaimed rewards will continue to accumulate until you choose to claim them.
Communication Around the ITN
Effective communication is key to the success of the Orcfax ITN. To keep validators informed, we use the following communication channels.
- Docs serve as the primary resource for Phase 1 of the Orcfax ITN, providing detailed guidance on setup, data collection, and participation requirements. Read the Docs!
- Discord is our communication platform, where updates, announcements, and discussions take place. It’s the fastest way to stay engaged with Orcfax’s progress and get real-time support. Make sure to verify your license to get access to the dedicated ITN channels!
Stay tuned for further updates, and get ready to play a crucial role in decentralizing the Orcfax oracle network!
